New York, May 29, 2026, 17:06 (EDT)
Amazon.com dropped 1.2% to $270.64 late Friday in New York, trailing as Wall Street hit new highs. Amazon Web Services brought in new demand with a fresh deal from Snowflake, but the shares still slipped. The last price left Amazon’s market cap around $2.94 trillion.
AI names kept getting bid with the main indexes at new all-time highs. Reuters said the S&P 500 gained 0.21%, Nasdaq added 0.20%, and the Dow closed up 0.72%. Ohsung Kwon, chief equity strategist at Wells Fargo, described a “euphoric sentiment in the market around AI,” adding that earnings were the big push for the move. Reuters
Amazon wound up in a tougher position. Investors have counted on AWS to help the company cash in on AI demand. But with Friday’s trading, the stock didn’t move in line with other AI shares.
Nasdaq’s regular session was over before the dateline. Normal hours are 9:30 a.m. to 4 p.m. Eastern, with after-hours from 4 p.m. to 8 p.m. The exchange lists May 25 for Memorial Day and June 19 for Juneteenth as upcoming holidays, but not Friday.
Snowflake shares surged over 33% after Reuters said the company boosted its annual revenue forecast and locked in a five-year, $6 billion deal with AWS. The agreement lets the data software firm use Amazon’s Graviton chips, which are built for cloud computing.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said Snowflake’s jump shows “how quickly sentiment can turn” when AI lifts revenue. Patrick Colville, equity research analyst at Scotiabank, put Snowflake in the “AI winner” group after the result. Reuters
Amazon’s results show AWS still drives the equity story. First-quarter net sales rose 17% to $181.5 billion, AWS sales jumped 28% to $37.6 billion, and operating income hit $23.9 billion, according to the company’s latest filing. CEO Andy Jassy called AWS’s growth “fastest growth in 15 quarters.” Amazon Investor Relations
Retail comes up next. Amazon says Prime Day is set for June in 26 countries, including the U.S., and its Q2 forecast counts on Prime Day taking place during the quarter. The company guided to Q2 net sales between $194 billion and $199 billion, and operating income from $20 billion to $24 billion.
Peers were split. Microsoft, which competes with AWS in cloud, gained 5.4%. Alphabet, another major cloud and digital-ad firm, dropped 2.5%. Walmart, a rival in retail, slipped 2.7%.
The risk stands out. Amazon reported free cash flow slipped to $1.2 billion over the past year, mainly hit by a $59.3 billion jump in property and equipment spending from AI investments. If demand for cloud slows, or if the big spend on data centers and chips takes longer to pay off, shares might lag behind the broader rally.
Investors are watching more than just Amazon. Reuters reported April inflation picked up at its quickest pace in three years, and Federal Reserve officials are talking about price pressure from higher energy costs. That puts expensive growth stocks at risk, since a higher discount rate makes future profits less attractive.
Ahead this week, investors are left asking if AWS growth and a June retail push are enough to keep backing a stock close to $3 trillion, while the index hits records even without Amazon out front. That isn’t a bear call. It’s the test.
